Non-reporting issuer
From Wikipedia, the free encyclopedia
Securities regulation in Canada is conducted by the various provincial securities commissions and self-regulating organizations (“SRO”) such as the MFDA and IIROC. Securities are issued under the authority and oversight of these bodies with the result that a broad range of rules apply to companies seeking to raise capital and to the parties acting as their agents in such transactions. However, there is a useful simplification that can be applied in Canada to provide some clarity for issuers - based on the criteria below securities issuers fall into two broad categories:
- prospectus offerings
- exchange listed
- highest level of mandatory regulatory compliance
- higher G&A
- most expensive to raise capital
Non-Reporting Issuers (“NRI”)
- exempt offerings (OM; accredited investors)
- non-listed
- lower level of mandatory regulatory compliance (mostly dictated by constating document of the issuer)
- generally lower G&A
- generally less expensive to raise capital
- tends to be smaller issuers with unique ideas or niche strategies